On Wednesday (Aug 3) we wrote: "Swing traders may already have locked in profit whereas positional traders should be aware that the first pullback of the current move off the low could shake their belief that higher prices are yet to come." That morning silver had tagged $20.45 spot resistance.
Today, on the absolute "blowout" jobs number, said pull-back seems to be manifesting. And, if what we are seeing now is the extent of it, it is shallow and is being bought. The below hourly chart shows gold finding support at its recent rising trendline.
A zoomed out look at gold, from the beginning of its recent bull market shows major resistance at the familiar $1830-35 level. Until then bulls may have the opportunity to buy dips relatively safely, if this morning’s action is any indication. Otherwise, $1750 gold remains the level of support bulls want to hold.
Thanks, and have a great weekend,
